ANSWERS | WITH COMPLETE SOLUTION!!
Chapter 9 Answer - Chapter 9
________ is defined as a contractual arrangement whereby one company
makes a legally protected asset available to another company in exchange for
some form of compensation.
A.
Foreign direct investment (FDI)
B.
Contract manufacturing
C.
Equity stake
D.
Joint venture
E.
Licensing Answer - E.
Licensing
One of the key advantages to licensing as a market-entry strategy is
____________________.
A.
the speed of diffusion of the new product or technology
,B.
increased market share
C.
brand awareness
D.
enabling a company to "borrow" another company's resources
E.
elimination of competition Answer - A.
the speed of diffusion of the new product or technology
Considering a licensee is typically a local business, what is the main benefit of a
licensing agreement?
A.
Avoidance of barriers for foreign companies doing business
B.
Expanded market control
C.
Reduced competition
D.
Corporate control
E.
Positioning Answer - A.
Avoidance of barriers for foreign companies doing business
Which of the following has the greatest appeal to local entrepreneurs who are
anxious to learn and apply Western-style marketing techniques?
A.
,Franchising
B.
Subsidiaries
C.
Joint ventures
D.
Licensing
E.
Mergers Answer - A.
Franchising
Which of the following is a general term that refers to capital that flows out of
the home country as companies invest in plants, equipment, and other assets?
A.
Joint ventures
B.
Equity stake
C.
Mergers and acquisitions
D.
Foreign direct investment (FDI)
E.
Greenfield investment Answer - D.
Foreign direct investment (FDI)
Which of the following terms refer to the startup of new operations?
A.
, Acquisition
B.
Joint venture
C.
Greenfield investment
D.
Equity stake
E.
Full ownership Answer - C.
Greenfield investment
Benefits of a joint venture entry strategy include sharing of risk, a good way to
learn about a new market environment, and ________.
A.
encouraging contract manufacturing
B.
establishing a franchise program
C.
an acquisition tool
D.
allowing partners to achieve synergy
E.
creating a licensing agreement Answer - D.
allowing partners to achieve synergy
What did Anheuser-Busch find was critical to success in the Japanese market?
A.